Matawan Doctor Accused Of Touching Patient, Admits Insurance Fraud

MATAWAN, NJ — A cardiologist who practiced in Matawan just had his license to practice medicine permanently taken away by the state of New Jersey, after he admitted to insurance fraud, and is separately accused of inappropriately touching a female patient.

The physician is Dr. Fazal Panezai, 76, a cardiologist who owned and operated Matawan-Aberdeen Heart & Medical Center, which used to be located on Main Street in Matawan (the practice closed this January). He is a resident of Morganville.

The State Board of Medical Examiners voted to permanently revoke Dr. Panezai's medical license because he was convicted in a $1.9-million healthcare fraud scheme. Dr. Panezai is also facing unrelated allegations that he engaged in criminal sexual contact with a female patient in 2018.

This was announced Friday by NJ Attorney General Matt Platkin and the Division of Consumer Affairs. The public can read the consent order to permanently revoke his medical license.

In an unrelated matter, Panezai has also been charged with fourth-degree criminal sexual contact against a female patient. That criminal charge stems from an alleged incident with the female patient in September 2018, said the Attorney General.

That allegation is pending investigation.

On April 11 of this year, Dr. Panezai pleaded guilty in federal court to one count of knowingly and intentionally executing a scheme to defraud healthcare benefit programs.

He is facing up to 10 years in federal prison. Dr. Panezai has not been sentenced yet.

The AG said Panezai submitted "numerous false claims" to health insurers: He submitted the false claims for office visits that either never occurred, or he exaggerated the length of the office visits. Panezai kept the illicit profits, which totaled more than $1.9 million, federal prosecutors said in this press release in April.

Panezai said he stopped practicing medicine in New Jersey last January, and he closed his Matawan cardiology practice on January 31, 2024. He agreed to permanently retire from practice in the state, with his retirement to be deemed a permanent revocation.

Were you a patient of Dr. Panezai's? In compliance with the Board’s regulations by November 4, 2024, Panezai must provide the Board with written notification as to where his patient records are secured and how patients may obtain them.